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Ford 'in need of new direction' Ford 'in need of new direction'
(about 14 hours later)
The boss of troubled carmaker Ford has admitted the company needs a completely new business model if it is to return to profitability.The boss of troubled carmaker Ford has admitted the company needs a completely new business model if it is to return to profitability.
Ford chairman and chief executive Bill Ford made the comments in a leaked memo that was subsequently formally released to the press.Ford chairman and chief executive Bill Ford made the comments in a leaked memo that was subsequently formally released to the press.
Mr Ford also said the company needs to explore alliances with other carmakers.Mr Ford also said the company needs to explore alliances with other carmakers.
Ford, which made a $1.3bn (£680m) loss in the first half of 2006, is expected to unveil fresh job cuts this month.Ford, which made a $1.3bn (£680m) loss in the first half of 2006, is expected to unveil fresh job cuts this month.
Bill Ford, the great-grandson of the company's founder, said the firm had to move to make more profits from its cars and smaller sports utility vehicles (SUVs).Bill Ford, the great-grandson of the company's founder, said the firm had to move to make more profits from its cars and smaller sports utility vehicles (SUVs).
He also said Ford needed to continue its leadership of the pick-up truck market in North America, better integrate its global operations, and increase sales in Asia.He also said Ford needed to continue its leadership of the pick-up truck market in North America, better integrate its global operations, and increase sales in Asia.
Targeting Renault boss?Targeting Renault boss?
The carmaker first announced its current cost-cutting and restructuring plan in January.The carmaker first announced its current cost-cutting and restructuring plan in January.
Ford has been handicapped by an over-reliance upon SUV modelsFord has been handicapped by an over-reliance upon SUV models
Entitled "The Way Forward", it envisages the closure of 14 plants in North America by 2012, with the loss of up to 30,000 jobs.Entitled "The Way Forward", it envisages the closure of 14 plants in North America by 2012, with the loss of up to 30,000 jobs.
The company is now widely expected to announce the deepening and acceleration of these cuts after a board meeting on 14 September.The company is now widely expected to announce the deepening and acceleration of these cuts after a board meeting on 14 September.
Mr Ford added in the memo that he was also keen "to attract leaders from outside when we need additional skills to turn around our business".Mr Ford added in the memo that he was also keen "to attract leaders from outside when we need additional skills to turn around our business".
In a new interview with Newsweek magazine, Mr Ford has admitted he is impressed with Renault and Nissan boss Carlos Ghosn, and would consider stepping aside for a suitable new leader.In a new interview with Newsweek magazine, Mr Ford has admitted he is impressed with Renault and Nissan boss Carlos Ghosn, and would consider stepping aside for a suitable new leader.
Lebanon-born Mr Ghosn is widely credited with turning around the fortunes of Japan-based Nissan.Lebanon-born Mr Ghosn is widely credited with turning around the fortunes of Japan-based Nissan.
Ford's US sales fell 12% in August.Ford's US sales fell 12% in August.
Like its big American rival General Motors, Ford has seen sales in its home market fall over the past year in the face of tough competition from Japanese firms such as Toyota, and an over-reliance upon thirty SUVs and pick-up trucks. Like its big American rival General Motors, Ford has seen sales in its home market fall over the past year in the face of tough competition from Japanese firms such as Toyota, and an over-reliance upon thirsty SUVs and pick-up trucks.
Sales of these vehicles have fallen as US petrol prices have risen sharply.Sales of these vehicles have fallen as US petrol prices have risen sharply.